Luxury Makes A Comeback

by Bertel Schmitt

Published: February 8th, 2011

Remember 2009? Luxury vehicles were unsalable. People did not have to money to buy them. Those who did have the money did not want to be seen in one. Makers that were heavy on luxury were put on death watch. (Not by this site. It monitored the vital signs of more mundane makes and their makers.)

How things have changed.

Luxury car makers are prepping the press and the stock market for a very strong first quarter and record sales in 2011.

BMW reiterated to the Wall Street Journal that they are expecting record sales this year.
Audi reported a 23 percent rise in global sales to 95,400 cars in January. “Based on the current order situation, we expect a strong first quarter,” said Audi sales chief Peter Schwarzenbauer.
Mercedes-Benz reported global sales of 82,700 cars in January up 23 percent.

#Audi #BertelSchmitt #BMW #Germany #Luxury #Mercedes #Sales

Bertel Schmitt

Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.

More by Bertel Schmitt

Comments

Join the conversation

14 comments

Philipbarrett on Feb 08, 2011

We are becoming a developing world economy, the rich get richer & everyone else gets poorer.

Like Reply
- See 1 previous
- M 1 on Feb 08, 2011
  
  Call me when a poor guy offers you a job.
  
  Like
- Stuki on Feb 08, 2011
  
  "Call me when a poor guy offers you a job." I don't have your number, but I've done plenty of work for financial sector companies, propped up by poor people asset stripped by inflation, instead of being allowed to fail on account of the all encompassing incompetence of their own, not so poor, management. I charge them healthy fees, as well. Nothing like a breath of basic competence to freshen up a cesspool of back markers whose sole achievement in life, is regurgitating whatever progressive drivel daddy's tutor told them on their way to the corner office.
  
  Like
Threeer on Feb 08, 2011

And here in the States, one of the networks did a spot with a Ferrari dealership in NY where they indicated a rather healthy spike in sales...guess the recovery hasn't hit me yet, as I'm not quite ready to move up to a new 458 from my 1997 Toyota Tercel...

Like Reply
- See 1 previous
- Geeber on Feb 08, 2011
  
  Just one test drive and you'll be writing that check in a flash...the question is how much of a trade-in will the Ferrari dealer give you for that Tercel.
  
  Like
- BlueEr03 on Feb 08, 2011
  
  As long as I don't have to wait for the check to clear to take delivery, I am fine with it.
  
  Like
Tallnikita on Feb 08, 2011

Lessee here...in the world where Tiguan gets priced anywhere between 26K and 40K, and pos econoboxes push $25K once you spec a/c and auto, and any crappy SUV can hit 40K with options, and nice luxury cars have various models in low 30s range, of course people may go for luxo brands instead of another overpriced appliance vehicle. the margin used to be $10K for a Stanza, $15K for Golf and $35K for 3-series. Now they are much closer.

Like Reply
- See 5 previous
- Dewfish on Feb 08, 2011
  
  I do agree that all of the "regular" brands all move upmarket, and it leaves nothing for the average consumer. Nowadays its $10K for a used car, $15K for a decent used car and $35K for a new car.
  
  Like
- Srogers on Feb 08, 2011
  
  I think that this is 'sky is falling' talk. We get more car for the money now than we ever did. Maybe you can pay $20k+ for a Fiesta, but for that price it comes with 6-speed dual clutch gearbox, power everything, a/c, cruise and a electronic control system that was unobtainable in the most expensive vehicles even 3 years ago. If you don't need all that, buy the model without those features. Fixed! When Nissan made $10k Stanzas, you'd have a hard time finding any 3 series worth $35k, unless you're counting the M3.
  
  Like
- Geeber on Feb 08, 2011
  
  I was at the Philadelphia Auto Show this past weekend, and, while I was sitting in the Honda Fit, another show attendee complained that "you can't get anything that is cheap today, even this stripped Honda costs over $15,000." For the record, this "stripped" Honda Fit had air conditioning, automatic transmission, AM/FM/CD stereo system, power windows, dual power mirrors, power steering, antilock brakes, enough air bags to keep the Titanic afloat and a level of fit-and-finish that was unheard of outside of the luxury sector about 15 years ago. I can remember when "loaded" cars had air conditioning and an AM-FM stereo, and a Cadillac was considered ritzy because it had power windows and power front seats.
  
  Like
- Dewfish on Feb 08, 2011
  
  I think that safety regulations are a big part of why "stripped" cars now have a lot of these features. that, and they realize that people could get a good used car with those same options or better for the same price.
  
  Like
- Tallnikita on Feb 08, 2011
  
  >>We get more car for the money now than we ever did. and that's what i am getting at. by the time the buyer dresses up his dream Accord or Camry to luxury levels, with all gizmos and leather, that car enters cheap luxury car territory, and then for extra 5K you drive an Audi or Acura and thus luxo sales go Up. And that's just for cars. New Ford Explorer or Cherokee are probably $5K away from Cayenne once you load them up with options.
  
  Like
- AJ on Feb 08, 2011
  
  ^May be true, but at least a Grand Cherokee has a Jeep logo on it, not to mention the 5k is still in my bank account. ;)
  
  Like
Mpresley on Feb 08, 2011

Bertel tells us that these are "global sales." Take away China, and I wonder...

Like Reply